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Bruce Pannier

Bruce Pannier is a Central Asia Fellow in the Eurasia Program at the Foreign Policy Research Institute, the advisory board at the Caspian Policy Center, and a longtime journalist and correspondent covering Central Asia. For a decade, he appeared regularly on the Majlis podcast for RFE/RL, and now broadcasts his Spotlight on Central Asia podcast in partnership with The Times of Central Asia.

Articles

Oil and Gas

KazMunayGaz Looking to Buy Another European Oil Refinery

Kazakhstan’s KazMunayGaz (KMG) is seeking to acquire an oil refinery in Bulgaria from Russia’s LUKoil at a bargain price. The purchase of Lukoil Neftohim Burgas, the largest oil refinery in the Balkans, would, according to some media sources, more than double [KMG’s] European refining capacity.” KMG reported a bid of $1 billion for the refinery, which one outlet stated “seems small.” Pressured Out The Burgas refinery was built in the early 1960s and “joined the LUKoil Group” in 1999. The European Union decision to impose a ban on Russian oil imports after the Kremlin launched its full-scale war on Ukraine deprived Lukoil Nefthohim Burgas of its major source of crude oil. According to a Financial Times report from November 2024, the Bulgarian government pressured LUKoil to sell the refinery, hitting the Russian company “with a 60% tax on profits in an effort to force out its owners” and prohibiting the “export of Russian crude-based products from Lukoil Neftohim Burgas.” In turn, LUKoil complained about “discriminatory laws and other unfair, biased political decisions toward the refinery.” KMG reportedly lost interest in the refinery in late 2024, but BNN Bloomberg reported on January 7 that the Kazakh company was still among the bidders for the Bulgarian refinery. Advantage KMG When the EU banned Russian oil imports, Lukoil Nefthohim Burgas compensated by purchasing oil from Kazakhstan and the Middle East. If KMG buys the Bulgarian refinery, presumably most or all of the crude processed there will come from Kazakhstan. Kazakhstan exported some 70.5 million tons of oil in 2023, and expects figures will be slightly less in 2024, some 68.8 million tons, due to maintenance at the Tengiz and Kashagan fields. Some 80% of those oil exports are shipped from Kazakhstan through the Caspian Pipeline Consortium (CPC) pipeline to Russia’s Black Sea port at Novorossiysk. Prior to Russia’s full-scale invasion of Ukraine, the EU purchased about 50% of the Kazakh oil shipped through the CPC pipeline, but that amount has risen to 80% since the ban on Russian oil imports was imposed. Kazakhstan is also increasing the amount of oil it exports through Azerbaijan to Georgia’s Black Sea port at Batumi, where KMG subsidiary KazTransOil owns the oil terminal. Kazakhstan has a deal to ship 1.5 million tons of oil annually through Azerbaijan, but Kazakh Energy Minister Abdusalam Satkaliyev said in November 2024 that his country was looking to boost that to 20 million tons. Kazakhstan currently has two Aframax-class oil tankers (deadweight 80,000 tons each) operating in the Black Sea, but plans to bring this number to 12 during the coming years. The Lukoil Nefthohim Burgas refinery has a capacity to process some seven tons of oil annually. KMG International already owns two oil refineries in Romania. The Petromidia refinery, with an annual capacity of some five million tons, is located 20 kilometers from the Black Sea port city of Constanta, and the much smaller and older Vega refinery, north of Bucharest, with an annual capacity of some 350,000 tons....

2 years ago

Regional Cooperation

Heads of Kyrgyz, Tajik, and Uzbek Governments Meet… Finally

It took more than 30 years, but the prime ministers of the three Central Asian countries that share the Ferghana Valley finally met to discuss a range of important issues that concern all three states. Tajik Prime Minister Kohir Rasulzoda, Uzbek Prime Minister Abdulla Aripov, and Chairman of Kyrgyzstan’s Cabinet of Ministers (Kyrgyzstan does not have a post of prime minister) Adylbek Kasymaliyev met on January 8 at a desolate area where the borders of the three countries meet. [caption id="attachment_27412" align="aligncenter" width="8256"] Image: gov.kg[/caption] The group touted agreements on the completion of the delimitation process along the Uzbek-Kyrgyz border and the early December 2024 agreement on the Kyrgyz-Tajik border. Since 1991, unmarked areas of the borders in the Ferghana Valley were often the scenes of conflicts between communities on either side of the frontier. Border guards sometimes fired on trespassers and dozens of people were killed or wounded, sometimes simply because they inadvertently strayed over unmarked territory into the neighboring country. The Ferghana Valley is the most densely populated region in Central Asia. This is due to the rich agricultural land which makes the region to this day the breadbasket of Central Asia. Soviet mapmakers drew lines to create Soviet republics in the region, though these borders mattered little since they were internal administrative boundaries inside one country. [caption id="attachment_27413" align="aligncenter" width="8256"] Image: gov.kg[/caption] After the USSR collapsed, these often-arbitrary, zigzagging borders took on meaning, and disputes quickly broke out about what land historically belonged to which nation and who had rights to water use. These issues were greatly complicated by the existence of enclaves created during the Soviet period such as Uzbekistan’s Soh and Shahimardon and Tajikistan’s Vorukh, all three of which are surrounded by Kyrgyzstan. Looking Ahead The three prime ministers discussed hydropower plants (HPP), an important topic for all three countries, especially as key HPPs are located in the mountains ringing the Ferghana Valley and more are currently under construction. Central Asia is one the regions most affected by climate change, so HPPs and water use in general are crucial issues, especially given that agriculture in the Ferghana Valley is vital to all three countries. All three countries face electricity shortages and hydropower is seen as a means of alleviating or even totally resolving this dilemma, but at the same time waters flowing from the mountains of Kyrgyzstan are important for agriculture in every Central Asian state. Uzbek media noted Uzbek Energy Minister Jurabek Mirzamahmudov was part of the delegation attending the January 8 talks. Reports did not mention if energy ministers from Kyrgyzstan and Tajikistan were also present. [caption id="attachment_27414" align="aligncenter" width="8256"] Image: gov.kg[/caption] Central Asia is also taking on a new importance as a trade corridor between Europe and China, and from Europe and China into Afghanistan and on further to Pakistan. Reports noted logistics were high on the agenda at the meeting of the three prime ministers. Trade between the three countries, specifically in the Ferghana Valley, was also discussed not only...

2 years ago

China-Kyrgyzstan-Uzbekistan Railway

Old Projects Now Part of Kyrgyzstan’s Near Future

Two projects that successive governments in Kyrgyzstan over the course of more than three decades have promoted as key to the country’s long-term success appear to finally be making progress. The idea for the China-Kyrgyzstan-Uzbekistan (CKU) railway dates back to the early days of Kyrgyzstan’s independence, and plans for construction of the massive Kambar-Ata-1 hydropower plant (HPP) go back even further, to the Soviet-era. After all these years, these aspirations that have almost faded into dreams are set to be realized. All Aboard On December 27, Kyrgyz President Sadyr Japarov took part in a ceremony near the southern city of Jalal-Abad to launch construction of Kyrgyzstan’s section of the CKU railway. The idea of a trans-Asian railway that would run from China into Kyrgyzstan and on to points further west goes back to the first meeting on Central Asian presidents in December 1991 in Ashgabat, Turkmenistan. It was a lofty ambition from five leaders whose countries had been independent for barely three months, but then-Kyrgyz President Askar Akayev followed up on the proposal, discussing the railway project with Chinese leaders when he visited Beijing in May 1992. That was more than one year before the first road border crossing opened between the two countries. By the end of the 1990s, the scope of the project had narrowed to a railway connecting China, Kyrgyzstan, and Uzbekistan, though it was often vaguely mentioned the line could be part of a longer railway connecting China to Europe through Central Asia. The topic of the CKU railway was always part of the agenda for every Kyrgyz president whenever they met with Chinese leaders. In June 2001, then-Kyrgyz transport and communications minister Kubanychbek Jumaliyev announced his country would sign an inter-governmental agreement with China and Uzbekistan on construction of the railway. At that time, Jumaliyev said some 250 kilometers of the line would pass through Kyrgyzstan and the cost of construction of the whole line would be about $2.3 billion. According to the latest plans for the route, CKU railway will be 486 kilometers, from Kashgar in China’s western Xinjiang Uyghur Autonomous Region to Torugart on the Kyrgyz-China border, then through the Kyrgyz cities of Makmal and Jalal-Abad to Andijon in Uzbekistan. The distance is not great, but the mountainous landscape of Kyrgyzstan through which the route will pass presents some formidable challenges. The 312 kilometers that will run through Kyrgyzstan requires construction of 81 bridges and 41 tunnels that will account for some 120 kilometers of the 312-kilometer Kyrgyz section of the railway. According to some sources, including Akylbek Japarov, who until December 16 was chairman of Kyrgyzstan’s Cabinet of Ministers, the estimated cost of building the entire railway is now put at some $8 billion. Cash-strapped Kyrgyzstan is expected to pay some $4.7 billion of that, and has already agreed to accept a Chinese loan of some $2.35 billion. The advantages for Kyrgyzstan will not come quickly, but they should come eventually. Simply being better connected to markets in Europe and China...

2 years ago

Konibodom

Fear Returns to Tajikistan’s Konibodom Area

A series of murders in spring had residents in the area around Tajikistan’s northern city of Konibodom on edge for weeks. Thirteen people were killed between late March and late May, apparently by someone who broke into their homes at night. The victims ages ranged from young children to elderly people; they were ethnic Tajiks and Kyrgyz (Konibodom is located near the border with Kyrgyzstan), and the crimes happened in different areas around the city. The murders stopped, and later the Tajik authorities said they had captured the suspects, but on December 9, the nightmare started again with six people being killed, and on December 16, four more people were found dead in their homes. The Killing Starts Again On December 9, the bodies of six people were found in the Shurkurgon neighborhood of Konibodom. All six were members of the Nematov family. Thirty-seven-year-old Naimjon was found hanged on a tree in the courtyard of the family’s home. His body showed signs of a struggle. His 33-year-old wife and four children, the youngest only two years old, were all strangled inside the family’s home. Local authorities and police have not commented on the killings. On December 16, reports said the bodies of 35-year-old Gaibullo Majidov and his 28-year-old wife Zarnigor were found in their home in Konibodom’s Hisorak neighborhood. Their three children were reportedly unharmed. On the same day in the same neighborhood, the bodies of 70-year-old Oyisha Shokirova and her 44-year-old son Javlon were found. Reports said all appeared to have died violent deaths, but the exact cause was not given. Police have also not commented on these murders. Prior to these latest killings, it appeared the police had caught at least some of the people responsible for a wave of murders in the spring that had local residents talking about “men in black” who prowled the streets in the middle of the night. The Authorities’ Version On July 31, Konibodom Mayor Abdusalom Tukhtasunzoda said a suspect had been caught for the May 28-29 killings of six people in the village of Sanjidzor, on the outskirts of Konibodom. Tukhtasunzoda did not give any details about the suspect or the motive, except to say the person had been detained the week before. The Konibodom mayor said the murders in May were not connected to the earlier killings of five members of the Sharipov family in March, or to Muzaffar Urmonov and his wife Inoyat Urmanova in April. Tukhtasunzoda also dismissed the tales being told of men dressed in black clothing and masks being responsible for any of the murders. “There were no people ‘in black’ in the city of Konibodom,” Tukhtasunzoda said, “The video, which is distributed on social networks, was not filmed in Konibodom. Such footage is being circulated to frighten people.” On August 8, First Deputy Interior Minister Abdurahmon Alamshozoda told a press conference the was “nothing sensational” about the murders in Konibodom the previous spring. Alamshozoda said the incidents in March and April were the...

2 years ago

Oil and Gas

Turkmenistan to Boost Gas Exports to Neighbor Uzbekistan

Uzbekistan has agreed to purchase more natural gas from Turkmenistan, though the amount of additional gas and the price remain unclear. Uzbek President Shavkat Mirziyoyev spoke by phone with the chairman of Turkmenistan’s Halk Maslahaty (People’s Council) and leader of the country Gurbanguly Berdimuhamedov on December 5 to discuss the deal. According to Turkmen state news, Berdimuhamedov “agreed to the increase” of Turkmen gas to Uzbekistan, and it would not be surprising if Berdimuhamedov was quietly dancing in celebration on the other end of the line. Anxious to Sell Turkmenistan has the fourth largest gas reserves in the world, some 17.5 trillion cubic meters, at least. To put that in perspective, the 27 countries of the European Union, combined, used 350 billion cubic meters of gas in 2022, meaning Turkmenistan has enough gas to meet all the EU’s gas needs, at current levels, for 50 years. Unfortunately, more than 33 years after becoming independent, Turkmenistan still does not have many customers for its gas. There is China, which buys the most Turkmen gas, some 35 billion cubic meters (bcm), Uzbekistan, which in recent years has been purchasing 1.5-2 bcm annually from Turkmenistan, and Azerbaijan, which gets 1-1.5 bcm of Turkmen gas via a swap arrangement involving Iran. Turkmenistan’s only successful recent export deal is with Iraq for 10 bcm, which involves a swap arrangement with Iran that will require maintenance work and repairs on Turkmenistan’s and Iran’s pipelines. Turkmenistan just lost Russia as a customer after the contract for Russia to purchase up to 5.5 bcm of Turkmen gas expired at the end of June 2024. The expiration of the agreement with Russia meant Turkmenistan lost its second biggest buyer, but that might now turn out to be good news for Uzbekistan. Anxious to Buy The jump in the number of people and accompanying expansion of service infrastructure have combined with Uzbekistan’s gross failure to increase domestic gas output to make Uzbekistan a net gas importer. In late January 2023, Uzbek media reported the country produced some 51.7 bcm of gas in 2022 and said plans called for increasing that to 56.3 bcm in 2023. Instead, gas production fell to 46.7 bcm in 2023, and it is set to decrease further in 2024. Uzbekistan signed its first contract for Turkmen gas in December 2022. That deal was for 1.5 bcm annually, but in August 2023, the two countries agreed to boost that to 2 bcm. However, that was not enough to fill Uzbekistan’s growing gas consumption needs. In June 2023, Uzbekistan signed a two-year agreement to import up to 2.8 bcm of gas from Russia, but by March 2024, reports showed Uzbekistan looking to increase Russian gas imports to 11 bcm starting in 2026. It looks like some of the 5.5 bcm Turkmenistan was until recently selling to Russia will instead be sent to Uzbekistan, so for Turkmenistan, the gas deal with Uzbekistan only recovers some of the revenue lost with the expiration of the contract with Russia....

2 years ago

Kyrgyz-Tajik Border

A Final Deal Along Central Asia’s Deadliest Border

It took some 33 years, but on December 4, Kyrgyz and Tajik officials reached a final agreement on delimitation of the last sections of their 972-kilometer border. It is a relief for the entire Central Asian region. In those 33 years the five Central Asian countries (including Kazakhstan, Turkmenistan, and Uzbekistan) have been independent, the only open conflicts between the armed forces of two Central Asian countries happened between Kyrgyzstan and Tajikistan. In the southern Kyrgyz city of Batken on December 4, Kyrgyz security chief Kamchybek Tashiyev and Tajik counterpart Saimumin Yatimov announced an agreement that Tajik state news agency Khovar said “fully completed the delimitation of the remaining sections of the Tajik-Kyrgyz state border.” Most of the Kyrgyz-Tajik border runs through the Pamir Mountains. The eastern part, approximately two-thirds of the common frontier, passes through remote and sparsely inhabited areas. Agreement on where the dividing line between the two countries was easy to reach in this section. The remaining one-third of the border in the west proved far more difficult to find compromises. [caption id="attachment_26293" align="aligncenter" width="2256"] Road near the Kyrgyz village of Ak-Sai. On one side of the road is Tajikistan, the other side, Kyrgyzstan; image: Bruce Pannier[/caption] Kyrgyz and Tajiks are two of the oldest peoples in Central Asia. Their ancestors lived in what is now the border area many hundreds of years before there were any borders. The Soviet Union changed that when it created the Kyrgyz and Tajik Soviet Socialist Republics, not only drawing lines on a map, which were redrawn more than once, but also including enclaves on either side of the border. Roads in the area zigzagged back and forth, one minute through Kyrgyzstan, and few minutes later through Tajikistan, over and over again. As border tensions began to appear toward the end of the 2000-2010 period, both countries started building roads to avoid crossing into the neighboring state, but the terrain is rugged, limiting possibilities for alternate routes. Also, new road construction is expensive and Kyrgyzstan and Tajikistan are both poor countries. [caption id="attachment_26294" align="aligncenter" width="2256"] The entrance to Tajikistan's Vorukh enclave; image: Bruce Pannier[/caption] The lone road leading from Batken to the Kyrgyz village of Ak-Sai and the Tajik enclave of Vorukh weaves through both countries several times and in some places, the road is the border. Visible from any village in this area are the snow-capped mountains, but down in the valleys, water has always been a problem. Like the roads, small rivers and canals meander across both sides of the border, and unsurprisingly, water use is a major source of tensions and has been a significant obstacle in deciding where the border should be. The first hints of trouble came after 2000 and involved petty vandalism, usually children throwing rocks at passing vehicles with license plates from the neighboring country. This escalated and after 2010, when incidents of physical altercations between members of border communities started, followed by vandalism targeting homes and businesses in border villages. Since much of...

2 years ago

Kyrgyz assassination plot

Just Another Reported Assassination Attempt in Kyrgyzstan

The head of Kyrgyzstan’s State National Security Committee (GKNB), Kamchybek Tashiyev, says someone was plotting to kill him, and it is not the first time, and it is not only Tashiyev people want to assassinate. On November 20, Tashiyev said he received an anonymous letter with a flash drive that contained a death threat. Tashiyev also remarked that already “5-6 assassination attempts were prepared against me,” and “GKNB officers prevented two attempts on the life of President Sadyr Japarov.” Normally this would be amazing, even chilling news. However, Japarov and Tashiyev have been uncovering so many plots, some rather dubious, to overthrow the government since they bulldozed their way to power in late 2020 that it is difficult to gauge the seriousness of these assassination claims. According to the GKNB, by November 25, those responsible for this most recent threat were already apprehended. Surveillance cameras outside a GKNB station in Bishkek recorded the person who dropped off the letter with the threat. He turned out to be a homeless man who delivered the letter after a person identified only by his initials “Zh. A. S.” offered him food in exchange for dropping off the letter. Zh. A. S. was identified as a former Kyrgyz military pilot who served in the CIS peacekeeping force guarding Tajikistan’s border with Afghanistan in the mid-1990s. The suspect was convicted twice. It was not mentioned for which crimes, but the GKNB did say he had been plotting “for a long time” to kill Tashiyev. A report from Kyrgyzstan’s KNEWS media outlet included a curious comment attributed to the GKNB that the suspect was connected to “intelligence services of foreign states and destructive forces, pursuing interests in destabilizing the socio-political situation in the Kyrgyz Republic…“ The Mafia Since 2023, Japarov’s government has been waging the fiercest campaign in Kyrgyzstan’s history against organized crime, and Tashiyev and the GKNB have been leading this battle. Tashiyev alluded to this in his November 20 comments. “When I started fighting organized crime groups and others, I knew that such threats would exist,” Tashiyev said, adding, “I knew they would put pressure on me to give up the fight.” Certainly, the campaign against organized crime has made the government, and Tashiyev specifically, some powerful enemies. Raimbek “Millions” Matraimov amassed a fortune when he was deputy chairman of Kyrgyzstan’s Customs Service from 2015-2017, and even then, people knew he was an organized crime leader. He was so powerful that when Sadyr Japarov was catapulted from a prison cell into the president’s office when unrest broke out in Kyrgyzstan in October 2020, there were suspicions that Matraimov’s wealth and clout backed this meteoric ascent.If that is true, Matraimov misjudged Japarov. In early October 2023, the GKNB killed Kamchybek Asanbek, alias Kamchy Kolbayev, alias Kolya Kyrgyz, while trying to arrest him at a Bishkek restaurant. Kolbayev was believed to be the top kingpin of the organized criminal world in Kyrgyzstan. Matraimov fled Kyrgyzstan shortly after that. Kyrgyz authorities started confiscating Matraimov’s assets in...

2 years ago

Oil and Gas

Russia Looking to Export Gas to China via Kazakhstan

Russia continues to try to reorient its natural gas exports from Europe to Asia and is planning a new pipeline route to China that would pass through Kazakhstan. Kazakhstan stands to benefit not only from transit fees, but could also import some Russia gas for regions in northeastern Kazakhstan that are desperately in need of more energy sources. The Russian plans are bad news for Turkmenistan as China is Turkmenistan’s main gas customer and Turkmen authorities were hoping to sell China even more gas. On November 15, Russian Deputy Prime Minister Aleksandr Novak mentioned the pipeline plan on the sidelines of a Chinese-Russian forum in Kazan, Russia. Novak said such a project is still only being discussed, but Russian media outlet Kommersant wrote on November 18 that there are already three options for the pipeline. All three possibilities pass though northeastern Kazakhstan, but Kazakhstan’s level of participation in the pipeline is different in each variation. One of the projects would require Kazakhstan to build a pipeline for gasification of the northeastern Pavlodar, Abai, and Karaganda provinces. A second proposal would include only the Abai and Zhetysu provinces. Russian gas giant Gazprom’s financial obligation also changes depending on the pipeline project selected. The most expensive option for Gazprom would cost more than $10 billion to construct and would not operate at full capacity until 2034. All versions foresee at least 35 billion cubic meters of Russian gas (bcm) shipped via the pipeline with Kazakhstan receiving some 10 bcm, which would greatly alleviate recent power shortages in northeastern Kazakhstan. Despite Novak saying the pipeline project was only being discussed, Kazakhstan and Russia appear well along in their planning. In early May, Kazakh Ambassador to Russia Duaren Abayev gave an interview to Russia’s TASS news agency and mentioned there was a “roadmap” for supplying 35 bcm of gas to China via Kazakhstan. Russia already exports gas to China via the “Sila Sibiri” (Power of Siberia) pipeline and expects that in 2024 the pipeline will for the first time reach its full capacity of 38 bcm. Construction of Sila Sibiri-2 with a planned capacity of some 50 bcm has been delayed due to China’s reluctance to loan Russia money for construction, differences over price, and China’s increasing purchases of liquefied natural gas (LNG). Novak commented on Sila Sibiri-2, saying the pipeline project involving Kazakhstan was separate and the Russian government will continue to negotiate with China about construction of Sila Sibiri-2. Russia is seeking to replace its former main customer, the European Union. Prior to the Kremlin launching its full-scale war on Ukraine in February 2022, the EU was buying between 150-160 bcm of Russian gas annually. The EU sharply cut back on Russian gas imports in response to the invasion of Ukraine and in 2023 imported less than 43 bcm. Russia’s pivot to Asia for gas exports targets the Chinese market, but Gazprom is looking to take any possible Asian customers and has found some in Central Asia. Russia’s surge into the Asian...

2 years ago

Oil and Gas

After Long Search, Turkmenistan Finally Finds a New Gas Customer – Iraq

Turkmenistan is reconfiguring its natural gas export options. Despite holding the world’s fourth largest gas reserves, Turkmenistan is exporting less of its gas today than it was 16 years ago. The big gas pipeline projects conceived nearly 30 years ago – a trans-Afghan pipeline to supply gas to Pakistan and India and a trans-Caspian pipeline to send gas to Europe - remain unfeasible for political reasons. Russia has been a leading customer for Turkmen gas for most of those three decades, but now Russia is competing for some of the same buyers as Turkmenistan. Stymied in its search for new markets at seemingly every turn, Turkmenistan is now planning on selling gas to Iraq, via a swap arrangement with Iran that includes bring Iranian companies to Turkmenistan to construct a new pipeline. Running Out of Options Turkmenistan is always looking for new gas customers. Iraq was never a potential gas buyer until recently, and in fact, the defunct Nabucco gas pipeline project of some 15 years ago considered Iraq to be a possible supplier of gas for Europe. Turkmenistan’s deal with Iraq appears to be the only deal possible at the moment, and it is an interesting arrangement. The two countries are not connected by any pipelines, so Turkmenistan will ship up to 10 bcm of gas to Iran, and Iran will send 10 bcm of its gas to Iraq. Turkmenistan signed what was described as a “binding agreement” for gas shipments after Iraq agreed to “an advance payment scheme and tax concessions.” In recent years, about 40% of Iraq’s gas imports came from Iran. After some 20 years of conflict, Iraq’s gas industry is still recovering, and gas imports are needed to operate the country’s power plants. However, sanctions on Iran made it difficult for Iraq to make payments for that gas. A Rocky Gas History There are already two gas pipelines connecting Turkmenistan’s gas fields to northern Iran. At the end of December 1997, the 200-kilometer Korpeje-Kurdkui pipeline with a capacity of some 8 bcm of gas was launched. In January 2010, the Dauletabad-Sarakhs-Khangiran pipeline with a capacity of some 12 bcm started operation. Turkmenistan was never close to shipping the 20 bcm combined capacity. Exports ranged from 6-8 bcm annually for years. Iran usually paid for its Turkmen gas in barter, sending a variety of goods, from food to engineering goods and services to Turkmenistan. In late 2016, a dispute developed between Turkmenistan and Iran over gas. Turkmenistan claimed Iran owed some $2 billion for gas supplies received in the winter of 2007-2008. Iran responded that Turkmenistan was inflating the price. The winter of 2007-2008 was especially cold causing severe gas shortages in 20 Iranian provinces. One Iranian media outlet reported on December 31, 2016, “Turkmenistan pounced on the occasion to demand a nine-fold hike which yanked the price up to $360 from $40 for every 1,000 cubic meters of gas.” On January 1, 2017, Turkmenistan halted gas supplies to Iran. The two countries took their...

2 years ago

Mining

New Era of Mining Starts in Kyrgyzstan

Kyrgyzstan will soon be issuing licenses for mining critical raw materials (CRM), which would have been almost unthinkable five years ago. However, a lot has changed in Kyrgyzstan, where a new president came to power in late 2020 and has since radically changed the form of leadership and is seeking new sources of revenue. A lot has changed in the world also, as governments are realizing the importance of CRMs for their economies and are scrambling to find supplies. Past Experiences Kyrgyzstan does not have significant reserves of natural gas or oil as most of the other Central Asian countries do. It was clear from the first days of independence that Kyrgyzstan’s main source of export revenue would come from mining, and Kyrgyzstan has significant deposits of CRMs. The Kumtor gold mine, 4,000-meters high in the mountains on the south part of the massive Lake Issyk-Kul, quickly became the economic savior for a country where most exports were agricultural products. Initial estimates put gold reserves at Kumtor at some 514 tons, but subsequent exploration revealed more gold at the site. Kumtor was a joint venture with Canadian company Cameco, but over time Cameco acquired nearly 75% of the project. There was environmental damage at the site that almost completely destroyed two nearby glaciers - Davidov and Lysiy. The most infamous incident involving Kumtor occurred in May 1998, when a Kumtor truck overturned into the Barskoon River, dumping nearly two tons of sodium cyanide into the water. Thousands of people were evacuated from area, several died, and business at Issyk-Kul, Kyrgyzstan’s premier tourst attraction, plummetted. The example of environmental problems at Kumtor turned public opinion in Kyrgyzstan against mining projects. Some 20 year later, the issue again came to the fore over the Kyzyl-Ompol uranium site in the Tong district of Issyl-Kul Province. In April 2019, nearly 30,000 people signed a petition to halt work at Kyzyl-Ompol. Anti-mining sentiment grew and by October 31, 2019, Kyrgyzstan’s parliament approved a moratorium on exploration and extraction of uranium and thorium that was signed into law in December that year. Something Everyone Wants The European Commission wrote that CRMs are crucial for “producing a broad range of goods and applications used in everyday life and modern technologies,” and noted, “Reliable and unhindered access to certain raw materials is a growing concern within the EU and across the globe.” Additionally, the attempts by many nations to wean themselves off fossil fuels have led to a surge in countries seeking to construct nuclear power plants (NPP) to meet their energy needs. There are currently some 440 operating NPPs in the world, 60 new reactors are under construction, and another 110 are planned to be built. Current President Sadyr Japarov rose to power after Kyrgyzstan’s revolution in 2020. Japarov, who is from the Issyk-Kul area, was an opponent of foreign ownership of the Kumtor gold mine, and in 2021 his government forced out Canadian company Centerra (which took over from Cameco in 2004). Kumtor was...

2 years ago

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